Loopscale paused protocol after Genesis vault attack; no user deposit losses reported but borrower repayments stalled.
Security & Exploits ·
On November 5, 2026, Loopscale paused protocol activity following a sustained attack campaign against its $SOL and $USDC Genesis Vaults on Solana. The team stated that affected vaults had been restored and user deposits incurred no loss, though the amount requiring reimbursement and the funding source remained undisclosed. Repayment functionality had not yet been restored at the time of the announcement, leaving borrowers unable to service their positions.
The attack involved malicious requests targeting the protocol's APIs over the preceding week, escalating to a level that triggered Loopscale's security detection systems, according to the team's account. The operator attributed the campaign to a sophisticated actor but provided no transaction-level details of how the activity affected the vaults. Loopscale's assurance of vault restoration came without independent verification of balance reconciliation.
Normal operations would resume once the full scope of the campaign was established and additional security measures deployed, the team said. Restoring repayment functionality was identified as the operational priority to mitigate unexpected liquidations, but no timeline was provided. Several critical details remained unresolved: whether borrowers could add collateral during the pause, how existing loans with expiring terms would be treated during the interruption, and when either the protocol interface or repayment system would become available to users.